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zalisa [80]
3 years ago
15

The gross margin ratio:

Business
1 answer:
yaroslaw [1]3 years ago
5 0

Answer:

The correct order of the question is below:

The gross margin ratio: 1- Is also called the net profit ratio. 2- Indicates the percent of sales revenue remaining after covering the cost of the goods sold. 3- Is also called the profit margin. 4- Is a measure of liquidity and should exceed 2.0 to be acceptable. 5- Should be greater than 1 for merchandising companies.

The answer is 2. Indicates the percent of sales revenue remaining after covering the cost of the goods sold.

Explanation:

Gross profit is the difference between cost of sales and net sales revenue and gross profit margin is calculated by gross profit divided by net sales revenue. It can be expressed as a percentage.

This margin is the first measure of profitability.

Option 1 is wrong. Net profit ratio is the ratio of net profit to sales revenue. Net profit is after all expenses and tax have been deducted from revenue.

Option 4 is wrong. This is not a measure of liquidity. Current ratio and quick ratio are a measure of liquidity.

Option 3 and 5 are wrong

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A long-term investment refers to an account on the asset side of an organization's monetary record that speaks to the organization's speculations, including stocks, bonds, land and money, that it expects to hold for over a year. The long-term investment account varies to a great extent from the short-term investment in that the transient speculations will no doubt be sold, while the long haul speculations may never be sold.

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You have just been hired to perform digital investigations and forensics analysis for a company. You find that no policies, proc
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Hi, your question isn't clear. Nevertheless, I inferred you want a sample policy document.

<u>Explanation:</u>

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7 0
3 years ago
Other things being​ equal, demand is less elastic A. the smaller the percentage of a total budget that a family spends on a good
telo118 [61]

Answer:

The correct answer is letter "D": the more substitutes a good has.

Explanation:

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Thus,<em> products with many substitutes are elastic because a minimal change in their price would represent a large change in quantity demanded since consumers will find similar products that satisfy their needs in the same proportion.</em>

3 0
4 years ago
The King Corporation has total annual revenue of $800,000; expenses other than depreciation of $350,000; depreciation expense of
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Answer:

Results are below.

Explanation:

<u>First, we will determine the net income for tax purposes:</u>

Sales= 800,000

Expenses other than depreciation= (350,000)

Gross profit= 450,000

Depreciation= (200,000)

EBT= 250,000

Tax= (250,000*0.34)= (85,000)

Depreciation= 200,000

Net income= 365,000

<u>Now, for reporting purposes:</u>

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Answer:

Complex

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7 0
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